Mark Cuban Sued for Misleading Promotion of Voyager

Mark Cuban Sued for Misleading Promotion of Voyager

Although Voyager declared its bankruptcy over a month ago, it seems that the news involving this crypto exchange is circulating almost daily.

Mark Cuban, an American billionaire entrepreneur and “Shark Tank” investor, has been sued for misleadingly promoting bankrupted crypto exchange Voyager

According to the lawsuit filed by The Moskowitz Law Firm at the United States District Court in Southern Florida, Cuban has promoted Voyager to the fans of his club, Dallas Mavericks

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The lawsuit claims that Cuban and Voyager CEO Stephen Ehrlich were targeting “young and inexperienced fans” to invest their savings into Voyager. According to the lawsuit, the fans are now calling it a Ponzi Scheme. 

Cuban and Ehrlich went to great lengths to use their experience as investors to dupe millions of Americans into investing—in many cases, their life savings—into the Deceptive Voyager Platform and purchasing Voyager Earn Program Accounts (‘EPAs’), which are unregistered securities.

Moreover, it claims that Cuban went out of its way to spread misleading and untruthful information about Voyager. The lawsuit states that Cuban and Ehrlich claimed that “the platform had no fees and was less expensive than its rivals”. However, according to the defendants, it was just another lie.

Investors state that they paid extremely high prices and were faced with hidden fees, while Cuban advertised it as “close to risk-free as you’re gonna get in the crypto.”

The Moskowitz Law Firm’s issued lawsuit states that in the last months before Voyager declared bankruptcy, it greatly depended on “Cuban’s monetary investments” and vocal support from an American billionaire and his basketball club. 

This is not the first time news circulates about Voyager or people connected to the company sharing misleading information. On July 28th, The Federal Reserve and Federal Deposit Insurance Corporation ordered Voyager to stop spreading false claims. 

On July 1st, Voyager halted withdrawals and trading on its platform. After four days, on July 5th, the company declared chapter 11 bankruptcy. 

However, after a month, Voyager received approval to return $270 million to its customers from the funds held in the Metropolitan Commercial Bank (MCB). 

Gile K. - Crypto Analyst

by Gile K. - Crypto Analyst, BitDegree